Hastings Farmers building sold for $27m amid call for investors

The well-known Farmers building in Hastings CBD. Photo / Warren Buckland

Property investment company PMG has bought the iconic Farmers building in Hastings CBD for almost $27 million.

PMG is in the process of finalising its purchase of the Farmers building on Heretaunga St West for $26,950,000, with settlement scheduled for March 31.

It comes as the company announced this week it is offering potential investors a chance to effectively own a portion of the site for as little as $1140.

People can invest in one of its funds, called PMG Generation Fund, and that money will go toward the purchase of the building.

The large, commercial building houses Farmers (which has a long lease) as well as other tenants and was put on the market in September last year.

PMG chief executive officer and director Scott McKenzie said it was a good investment opportunity.

"[That commercial building] is located in the heart of Hastings shopping centre which services the extensive Central Hawke's Bay farming community and neighbouring towns of Havelock North, Clive and Taradale.

The huge Farmers building also houses other tenants. Photo / Warren Buckland

"Furthermore, Hastings is currently experiencing a regional housing boom with over 8000 homes forecast to be built by 2030.

"These factors make this property an appealing prospect for our investors."

Open to all New Zealanders, you can invest in the PMG Generation Fund by purchasing a minimum 1000 units (shares) at $1.14 per unit, up until March 30, the company stated.

That means minimum investment in the fund is $1140.

"Assuming the successful completion of the offer [for the Farmers building], the fund's total portfolio value of all the properties is expected to exceed $200 million," a PMG release read, referring to other properties around the country already owned by that fund.

You can use the returns calculator on the PMG website, on the Generation Fund page, to see what your return could be if you invest.